The importance of a diversified, vibrant, mature and efficient financial system in stimulating economic development cannot be overemphasized. Economists often suggest that if the financial system is to play a role in the economic growth of a country, it can be through its effect on financial innovation. The extant literature reveals that financial innovation has been a critical and persistent part of the economic landscape over the past few decades. It has been argued that financial innovation has the potential of putting a country’s economy in the high growth trajectory. However, the most recent global financial slow down reminds us that financial innovation is not without risk; it can create, or intensify risk. This book, therefore, provides a study on the role of financial innovation in the emerging capital market of India in contributing to economic growth of the country through its developmental influence on the financial sector. The book would be useful to investment managers, market participants, and professionals dealing with innovative financial products. It would be helpful to policy makers or anyone else who is involved in the process of economic and financial planning.